The reforms should give companies more confidence about sacking workers when they have legitimate reasons.

Employers welcomed the Coalition's efforts to bring down the £7,000 cost of employment tribunals for companies.

However, many business groups warned that "tweaking the edges of the system" is not enough to restore Britain's economy.

Simon Walker, director-general of the Institute of Directors, said there must be more "drastic measures to cut costly regulation and continue to tackle the deficit".

"It’s not the number of bills that matters, it’s what is in them that really counts,” he said.

John Walker, chairman of the Federation of Small Businesses, also raised concerns that forcing companies to go into mediation with sacked employees could actually create "an additional administrative layer".

The Queen's speech also confirmed the creation of eight new quangos, despite the Coalition’s promises to cut red tape.

A supermarket watchdog will stop big retailers using bullying behaviour against farmers and small food companie. However, businesses yesterday claimed the watchdog may be a “toothless tiger”, as it will not have the power to fine supermarkets for bad behaviour.

Phil McCabe, of the Forum of Private Business, said there was concern the new regulator would be “woefully inadequate” to take on large retailers.

Businesses will come under the regulation of a new Competition and Markets Authority, taking some powers from the Office of Fair Trading and all from the Competition Commission.

A Banking Reform Bill will make sure banks separate out their customer deposits from their riskier investment arms.

There will also be an Office for Nuclear Regulation financed by energy companies and a Green Investment Bank to hand out funding for low-carbon energy projects.

John Cridland, CBI director-general, said: “The test for this Queen’s Speech is whether it will help businesses to grow. Two Bills stand out for me: energy and regulatory reform. The first should help, but the jury’s out on the second.”